Cathay Pacific Airways (0293) H2 2025 earnings summary

Executive summary

• Achieved third consecutive year of strong financial performance, with profit attributable to shareholders rising 9.5% year-over-year to HK$10.8 billion and revenue up 11.9% to HK$116.8 billion, surpassing pre-pandemic levels.

• Completed a HK$7 billion share buy-back from Qatar Airways in February 2026, enhancing EPS and reducing market volatility.

• Strategic focus on team engagement, customer satisfaction, and profitable business, with Net Promoter Scores reaching historical highs and global recognition for service excellence.

• Expanded network to over 100 destinations, surpassing pre-pandemic capacity and launching new destinations in 2025, while celebrating the 80th anniversary.

• Committed over HK$100 billion to fleet, cabin, lounge, and digital innovation investments, with more than 100 new-generation aircraft in the delivery pipeline.

Financial highlights

• Group attributable profit reached HK$10.8 billion in 2025, up from HK$9.9 billion in 2024, with a profit margin of 9.3%.

• Revenue rose to HK$116.8 billion, the highest in company history, up 11.9% year-over-year.

• Return on capital employed increased to 12.4% in 2025, exceeding 10% for three consecutive years.

• Cost per ATK (excluding fuel) decreased by 1.7% to HK$2.32, reflecting economies of scale.

• Available unrestricted liquidity rose to HK$25.4 billion at year-end, reflecting strong cash generation and prudent investment.

Outlook and guidance

• Passenger capacity expected to grow by around 10% in 2026, with new destinations and increased frequencies.

• Cautious optimism for 2026, with risks from geopolitical tensions, supply chain challenges, and cost inflation.

• Cargo capacity to increase through passenger belly growth and new A350F freighters; six firm orders placed.

• Continued investment in fleet, product, and digital enhancements, with HK$100 billion committed to future growth.

• HK Express anticipated to return to profitability as efficiencies improve; positive start to 2026.